Creatd, Inc. (Nasdaq CM: CRTD, CRTDW), the parent company of Vocal, a proprietary technology platform for creators, today announced that it has entered into definitive securities purchase agreements in connection with a private placement of its Series E Convertible Preferred Stock and warrants to existing shareholders as well as new institutional investors. Upon the closing of the financing, which is anticipated to occur on or prior to January 4, 2021, the Company expects to receive gross proceeds of approximately $7.77 million, not including any proceeds that may be received upon exercise of the warrants. Creatd intends to use the net cash proceeds of $7,078,000 from the financing to satisfy Nasdaq's stockholders' equity listing requirements as well as to further accelerate the Company's business plan, social media and digital marketing initiatives, pay non-commission financing expenses, repay all of its minimal remaining outstanding debt, and fund any additional working capital needs and accretive acquisitions.
Each share of Preferred Stock, which carries no coupon, is convertible at any time into one share of the Company's common stock (the "Common Stock") without further consideration paid to the Company. The Preferred Stock is convertible into a total of 1,887,810 shares of Common Stock. In addition, holders of the Preferred Stock will receive a five-year stock purchase warrant to purchase a quantity of shares of the Common Stock up to one hundred fifty percent (150%) of the number of shares of Common Stock into which the underlying Preferred Stock may be converted (a total of 2,831,715 shares of Common Stock), at an exercise price of $4.50 per share. The combined purchase price of one share of Preferred Stock, convertible into one share of Common Stock, and one and a half warrants to purchase Common Stock will be $4.12, which is priced at-the-market under Nasdaq's rules.
About Creatd
Creatd, Inc. (Nasdaq CM: CRTD, CRTDW) empowers creators, brands, and entrepreneurs through technology and partnership. Its flagship technology, Vocal, is a best-in-class creator platform.
